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Citrix Systems Inc (NAS:CTXS)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Citrix Systems Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

CTXS' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 8

3
8

During the past 13 years, the highest Piotroski F-Score of Citrix Systems Inc was 8. The lowest was 3. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was 95.228 + 28.887 + 103.275 + 55.925 = $283 Mil.
Cash Flow from Operations was 190.431 + 291.871 + 201.147 + 259.795 = $943 Mil.
Revenue was 851.483 + 760.802 + 796.759 + 813.27 = $3,222 Mil.
Gross Profit was 676.831 + 628.196 + 664.008 + 667.016 = $2,636 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(5231.477 + 5512.007 + 5454.636 + 5501.975 + 5405.483) / 5 = $5421.1156 Mil.
Total Assets at the begining of this year (Sep14) was $5,231 Mil.
Long-Term Debt was $1,317 Mil.
Total Current Assets was $1,737 Mil.
Total Current Liabilities was $1,548 Mil.
Net Income was 138.644 + 55.939 + 53.024 + 47.532 = $295 Mil.

Revenue was 802.42 + 750.819 + 781.56 + 758.994 = $3,094 Mil.
Gross Profit was 665.712 + 616.493 + 606.304 + 623.009 = $2,512 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(5123.989 + 5212.249 + 5269.473 + 5249.216 + 5231.477) / 5 = $5217.2808 Mil.
Total Assets at the begining of last year (Sep13) was $5,124 Mil.
Long-Term Debt was $1,285 Mil.
Total Current Assets was $1,445 Mil.
Total Current Liabilities was $1,462 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Citrix Systems Inc's current net income (TTM) was 283. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Citrix Systems Inc's current cash flow from operations (TTM) was 943. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Sep14)
=283.315/5231.477
=0.05415583

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=295.139/5123.989
=0.05759946

Citrix Systems Inc's return on assets of this year was 0.05415583. Citrix Systems Inc's return on assets of last year was 0.05759946. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Citrix Systems Inc's current net income (TTM) was 283. Citrix Systems Inc's current cash flow from operations (TTM) was 943. ==> 943 > 283 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=1316.892/5421.1156
=0.242919

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=1285.092/5217.2808
=0.24631452

Citrix Systems Inc's gearing of this year was 0.242919. Citrix Systems Inc's gearing of last year was 0.24631452. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Sep15)=Total Current Assets/Total Current Liabilities
=1737.138/1547.542
=1.12251428

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=1444.71/1462.447
=0.9878717

Citrix Systems Inc's current ratio of this year was 1.12251428. Citrix Systems Inc's current ratio of last year was 0.9878717. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Citrix Systems Inc's number of shares in issue this year was 161.8. Citrix Systems Inc's number of shares in issue last year was 165.7. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2636.051/3222.314
=0.81806149

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2511.518/3093.793
=0.81179251

Citrix Systems Inc's gross margin of this year was 0.81806149. Citrix Systems Inc's gross margin of last year was 0.81179251. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Sep14)
=3222.314/5231.477
=0.61594727

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=3093.793/5123.989
=0.60378603

Citrix Systems Inc's asset turnover of this year was 0.61594727. Citrix Systems Inc's asset turnover of last year was 0.60378603. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Citrix Systems Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Citrix Systems Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0001110001
Question 4 1111111111
Question 5 1111111101
Question 6 0000101000
Question 7 0111001111
Question 8 0000000001
Question 9 0100101000
F-score 4656757547

Citrix Systems Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0000000001
Question 4 1111111111
Question 5 1110000111
Question 6 0011000010
Question 7 1111111111
Question 8 0000000111
Question 9 1000000010
F-score 6565444687
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